A new financing scheme based on credit guarantees has been proposed by GIRSAL Ltd, a non-banking financial institution, for future programmes that subsidize fertilisers (FSP) in Ghana.
The aim of the scheme is to support the growth of the agricultural sector by making fertilisers more affordable and accessible for farmers.
The CEO of GIRSAL Ltd, Kwesi Korboe, explained the benefits of the scheme in an interview with B&FT at a stakeholder validation workshop in Accra.
He said that the scheme would reduce the interest costs on fertilisers for farmers by providing credit risk guarantees to financial institutions that lend to the agricultural sector.
The workshop was organised to assess the FSP under the government’s Planting for Food and Jobs programme, which is one of the initiatives to transform the agricultural sector in Ghana.